New Delhi, Sep 4 (PTI) Delhi Chief Minister Rekha Gupta on Thursday said the rate cut in goods and services tax (GST) is a "big gift" for the country and will prove to be a milestone for the Indian economy.

Gupta, who attended her first GST Council meeting on Wednesday, also thanked Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, saying the move will strengthen trade and businesses in the country.

"It is a very big gift for the country... The rate cut in Health Insurance and daily use items is a big relief for the crores of people in the country who are thankful to Prime Minister Narendra Modi," Gupta told reporters.

She said the GST Council passed the rate revision in GST with immense support. It is going to boost trade and businesses, and the move will prove to be a milestone in the Indian economy, she said.

"Delhi is very happy, and I thank the prime minister on behalf of Delhi citizens for the nil GST on health insurance and educational items. Renewable energy has been supported, and it will immensely benefit Delhi as we are promoting solar energy," she said.

The GST Council, in its meeting on Wednesday, simplified the GST from the current four slabs to a two-rate structure -- 5 and 18 per cent. A special 40 per cent slab is also proposed for a select few items such as high-end cars, tobacco and cigarettes.

The GST tax rates on common-use items ranging from hair oil to corn flakes, TVs, and personal health and life insurance policies were slashed. Life and health insurance have been exempted from the GST, which earlier attracted 18 per cent tax.

The government's move to cut GST on medicines and medical devices while exempting lifesaving drugs from the levy will bring direct relief to the people. PTI VIT VIT NSD NSD

GST rate revision streamlines slabs and exempts health and life insurance, altering tax incidence and compliance obligations. The document reports a structural revision of the goods and services tax regime, consolidating multiple slabs into a simplified two rate framework plus a special high rate band; it exempts health and life insurance and certain educational items, exempts life saving drugs and specified medical devices, reduces rates on common consumer goods, and grants favourable GST treatment to renewable energy inputs, with operational consequences for invoicing, taxable incidence and supplier compliance under the new classification.